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0 pointsthrowaway20372mo ago0 comments

    > also note that index ETFs have tracking errors all the time (that's why arbitrage traders still have business!)

I call bullshit. We are talking about tracking errors in single basis points for well structured ETFs with good liquidity. This spread is still (at least!) 10x less than what a normie retail trader could achieve on their own -- trading the basket manually.

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super2562mo ago

I didn't mention retail traders anywhere. With arbitrage traders I mean those companies who do hft all the time and are directly connected to exchanges. They still do business.

j / k navigate · click thread line to collapse

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super2562mo ago

I didn't mention retail traders anywhere. With arbitrage traders I mean those companies who do hft all the time and are directly connected to exchanges. They still do business.

j / k navigate · click thread line to collapse